Consumer Behaviour -Prof.

Rajesh Satpathy
Family Life Cycle

Def: Families progresses through various steady and
predictable stages in their life called Family Life Cycle.


Bachelor Stage Young Couple Stage Young Couple with

Children Stage Middle Age Stage Grown Children Stage

Retired Stage Sole Survivor Stage


Marketing Implications: Here, the amount of money readily
available for purchase, changes as the cycle progresses.

Family Life-Cycle (FLC)
Family Life Cycle

The FLC is a composite variable created by systematically
combining such commonly used demographic variables as
marital status, size of family, age of the family members,
presence or absence of children at home and employment
status of head of the family.
Kids Pester Power (5-14)

The child has not just an influencer, but even the decision maker
in snax n sweet segment. The child is the initiator as well. All
these have great implications for the marketer. You need to
know the child psychology and their buying behavior.

6 I Kids Insight Module: Inquisitive: kids have become very
curious n much interested in issues Indulgent: they want to
spend and live life luxuriously Integrity: they look for
authenticity of the product n praise the brand that are honest
Influencer: they influence the choice not just kids product but
luxurious items as well Involved: Kids perceives value in the
products n are part of buying process Incisive: kids can analyze
brands and they respect merits rather than cheap selling.
FLC
Stage -1: Bachelorhood (Youth)

The first stage consists of young single male / female (age 15-28
years) who have establish household apart from their parents.
This is a important segment for marketers as 54% of Indias
population is below 25 years.

Early Youth (14-21): Their key decision is education n career.
Major Influencer- Parents and Peers.
Pocket Money: Rs. 1000 to 2000 PM
Spending : Clothing, Accessories, Food n Entertainment

Behavior: They are always looking for value for money. They
prefer to shop at unorganized outlets coz of price sensitivity.

Eg: Vodafone Prepaid Mobile Recharge from Rs. 4 onwards
FLC
Vodafone
Video: Vodafone (Made for you Offer)
Stage -1: Bachelorhood (Youth)

Middle Youth (22-28): With increased job opportunities in IT n
BPO sector their income ranges from Rs. 7,000 to Rs. 50,000 PM

Major Influencer- Friends and Peers.

Spending : Clothing, Accessories, Food, Consumer Durable n
Entertainment

Behavior: They keep on looking for innovative and trendy
brands. They prefer to shop at organized / Exclusive outlets coz
price is not a factor.

FLC
Video: Sony Xperia Play
Video: Sony Vaio Vivid
Video: Levi`s Strauss Signature
Video: Philips GoGear Xive
Stage- 2: Honeymooners (29 to 35)

The honeymoon stage starts immediately after the marriage
ceremony and generally continues till the arrival of the couples
first child. In India wedding is a big industry and great
opportunity for marketers.

A report by Economist says Indians spends over Rs. 50,000
Crores on wedding each year. Nearly 1.4 Crores Indians get
married every year.

This FLC stage serves as a period of adjustment to married life!!!
This group is generally better of financially then they were
single. This group has highest purchase rate.
Spending: Household products, clothing, accessories, food n
entertainment. Influencer: Peers, Friends, Neighbors
FLC
Video: Mahindra Quanto
Stage- 3: Parenthood

The parenthood stage (Full-Nest Stage) usually extends over
more than 20 years. With a new born, some wives stop working
and that leads to decline in income level.

At this stage of FLC the average expenditure is very high. Family
spends considerable amount on education of children.

Elementary School phase High School phase College Phase

Here the impact of kids on family purchase decision is high, so
marketers need to give prime importance to Kids.
FLC
Kids Pester Power (5-14)

Kids are playing major role in consumer buying now a days.
More than 37% (347.5 million) of population in India falling into
this category. In every fields, kids are dreaming high and are
moving fast to fulfill their dreams.

Kids Brand: Cadbury, Nestle, Amul, Cartoon Network, Horlicks,
Boost, Complan, Frooti etc.

The wave of child consumerism is not limited to just some
region, but is widespread all over India coz of media exposure.

Research shows kids were being used in Ad and has influence in
product category like- AC, Cooking Oil, Home appliances,
beverages n food, foot-ware and even tooth paste.
FLC
Video: Horlicks Health Drink
Stage -4: Post-Parenthood

At this stage the children have left home and are no longer
financially dependent on their parents. At retirement the family
is not satisfied with its financial positions and shaving
accumulation. Couples is least interested in new product.
Spends more on medicines and medical expanses.

This also called empty-nest stage signifies for many parents
almost a rebirth.
FLC
Stage -5: Dissolution

Dissolution of the basic family unit occurs with the death of one
spouse. During this stage individuals have a special need for
attention, affection and security.

As we learned FLC, its may not be true that all families do pass
through these stages of life cycle. As coz we have excluded
Indian Joint Family system.
FLC

Implications for Marketers

The marketer is interested not only in the physical act of
purchasing products, but also the specific roles played by each
family member across stages of decision making process.

Implications:

1. Guiding product designers to include feature that appeal to
those most influential in making purchase decisions.
2. Selecting the proper respondent in consumer survey.
3. Selecting advertising media.
4. Selecting Ad message.
5. Assisting in the location of Retail Outlets.
FLC
Thank You!!